Once a Product Has Been Developed and Is on the Market

question 39

Multiple Choice

Once a product has been developed and is on the market, the company can extend the product by ________.

• A) creating additions to existing product lines
• B) creating new names for the same products
• C) developing persuasive advertisements
• D) upgrading or modifying existing products
• E) creating a fundamental change in the marketplace

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Definitions:

Direct Material

The raw materials that are used directly in manufacturing a product and can be easily traced to the final product.

Factory Overhead

Indirect costs incurred during the manufacturing process, not including direct materials or direct labor.

Materials

Raw inputs or supplies used in the manufacturing process to produce goods or are consumed during the service delivery.

Labor

The human effort, both physical and mental, used in the production of goods and services.